How to Find Out if a Loved One Had Life Insurance
Navigate the process of locating a deceased loved one's life insurance policy and understanding how to claim the benefits.
The passing of a loved one brings emotional challenges, and navigating financial affairs during such a time can add stress. Among these responsibilities is determining if the deceased held a life insurance policy, which could provide financial support to beneficiaries. Many life insurance benefits go unclaimed each year, often because beneficiaries are unaware of its existence or how to locate it. This article guides you in uncovering this information.
Gathering Initial Clues and Documents
The initial search for a life insurance policy typically begins with a review of the deceased’s personal records. This involves examining physical documents such as financial statements, bank records, and tax returns, which may indicate premium payments or policy details. Safe deposit boxes, if accessible, are also common places where important financial papers, such as insurance policies, might be stored. Reviewing physical mail for insurance-related correspondence, like billing notices or policy updates, can also provide insights.
Beyond physical documents, digital accounts and emails require inspection. Electronic statements or communications from insurance companies may be found in the deceased’s email archives or online banking portals. Contacting financial advisors, estate planners, attorneys, accountants, and even family members or close friends can provide leads, as they may know of existing policies. Look for any mention of an insurance company name, policy number, or premium payments.
Utilizing Official Policy Search Tools
When personal searches prove inconclusive, several resources can help locate a life insurance policy. The National Association of Insurance Commissioners (NAIC) offers a free online Life Insurance Policy Locator Service, a valuable tool. To use this service, you need to provide the deceased’s full legal name, Social Security number, date of birth, and date of death, found on the death certificate. Once a request is submitted, participating life insurance and annuity companies search their records. If a policy is found where you are a beneficiary, the insurer will contact you directly, usually within 90 days.
The Medical Information Bureau (MIB) Policy Locator Service is another resource. The MIB maintains a database of life insurance applications processed by member companies since 1996. While it doesn’t guarantee a policy was issued or remains in force, it can identify companies the deceased applied to for coverage, providing leads. This service typically costs around $75, with responses returned within ten business days. Access to MIB services is usually restricted to estate executors or administrators, and some states, like California, may have limitations.
State unclaimed property databases are another option, as unclaimed death benefits are eventually turned over to the state. Each state maintains its own database, searchable for free via official state government websites or aggregated sites like MissingMoney.com (sponsored by NAUPA). Search states where the deceased lived or conducted business. Contacting state insurance departments can also provide assistance or information regarding licensed insurance companies.
Required Information for Claim Submission
Once a life insurance policy is located, gathering specific information and documents is the next step before submitting a claim. A certified copy of the death certificate is required by insurance companies to verify the policyholder’s death. Multiple certified copies are recommended, as various institutions may request them. The policy number is also needed, though some insurers can locate the policy with the company name and deceased’s information.
Identification of the beneficiary is paramount. The insurance company requires the full legal name and contact information of all beneficiaries. Providing a Social Security number for beneficiaries is necessary for identification and to streamline payout. Claim forms, provided by the insurer, must be completed, requesting details like relationship to the deceased and cause of death. If the policy includes riders, such as an accidental death benefit, related medical records or police reports may also be requested to support the claim.
The Process of Claiming Benefits
Initiating a life insurance claim begins by contacting the insurance company directly, via phone, online portals, or mail. Many insurers have online claim forms; others may require a phone call or mailed claims packet. Fill out all required paperwork completely and accurately to avoid processing delays.
Once the claim form is completed and necessary documents gathered, submit them to the insurer. This often involves mailing certified copies of documents like the death certificate, or uploading them through a secure online portal. Keep detailed records of all submitted documents and communications with the insurer. Insurers process claims within 30 days of receiving all required paperwork. However, cases involving a contestability period (usually the first two years of the policy) may take longer due to investigation. If delays occur, the insurer is obligated to provide updates and may pay interest on the death benefit.
Upon approval, benefits are paid out to beneficiaries. Common payout methods include a lump sum, receiving the entire death benefit in a single payment. Other options include installments over a fixed period, a fixed amount paid regularly until funds are exhausted, or an interest income option where the company holds proceeds and pays interest. Some policies might offer retained asset accounts, functioning like a checking account, allowing beneficiaries to withdraw funds as needed while the balance earns interest. Life insurance payouts are generally not considered taxable income for the beneficiary.